Transaction Types

RM³ Capital seeks the following types of investments:

  • Management buyouts.
  • Family-driven ownership and estate succession planning.
  • Restructuring.
  • Recapitalizations.
  • Reorganizations.
  • Partner buyouts.

Favorable Characteristics of Targeted Companies

  • Short-term potentially EBITDA of at least $250,000;
  • Demonstrated recurring revenue between $1 and $10 million;
  • Current positive free cash flow or attainable within short-term.

Controlling Interest

RMC seeks to invest in companies where it has a controlling interest. We will consider investing in minority positions with compatible co-investment partners.

Typical Investment Size

RMC will typically invest between $200,000 and $2 million. In such cases the required investment is greater we have the ability to partner with third party investors.

Target Industries

  • Business and commercial services;
  • Fiancial services;
  • Consumer;
  • Distribution and logistics;
  • Healthcare services;
  • Industrials;
  • Technology-enabled Manufacturing.

Excluded Industries

  • Start-ups seeking venture capital or other early stage situations;
  • Highly regulated industries;
  • Highly cyclical or capital intensive businesses;
  • Real estate;
  • Natural resource producers;
  • Retail food and beverage;
  • Consumer retail stores;
  • High technology or internet based;
  • Business segments that lack growth potential in earnings or an appropriate exit strategy.

Geographic Preference

RMC’s primary acquisition focus is in the Midsouth, although we will consider investing in companies throughout the United States and Canada.

Will RCM Co-Invest

RMC will consider investments in minority positions with compatible co-investment partners. In such cases we would require Board representation with appropriate corporate governance provisions and a well structured exit strategy.

Will I still be a private company

Yes. RMC only invests in privately held companies and does not enter into deals where the expected outcome is to convert to a publicly held company.

RMC Exit Strategy

At RMC Capital our goal is to own companies for the long-term with cash distributions of profits being made to all equity partners once the business is properly capitalized and current growth needs are satisfied. RMC is willing to consider exit strategies such as a management buyout or strategic sale, a quick profit is not the principal goal of RMC.

Business Workout (definition)

Wikipedia defines Corporate Workout as ...practices aimed to remedy or avoid foreclosure and bankruptcy. The debtors, creditors as well as the main shareholder and bondholders voluntarily participate in the workouts in order to make rearrangements concerning financial investments and rescheduling and restructuring debt.

EBITDA (definition)

EBITDA = Revenue - Expenses

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is essentially net income with interest, taxes, depreciation, and amortization added back in. It eliminates the effects of financing and accounting decisions and can be used to analyze and compare profitability between companies and industries.

Free Cash Flow (FCF) (definition)

Free Cash Flow = Net Cash Flow From Operations - Capital Expenditures

Simply put FCF is the amount of cash that a company has left over after it has paid all of its expenses, including investments.

Contact Us

  • RM³ Capital
  • Two International Plaza #612, Nashville, TN 37217
  • (615) 745-9886
  •   Contact Us

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